How to invest in the stock market when you are a beginner?

The stock market – definition

Whether you are a beginner or an experienced investor, you owe it to yourself to know the basics of the stock market.

So what is the stock market?

The stock exchange is a financial market on which hundreds of transactions in market or transferable securities take place every working day. All investors (beginners or experienced) can buy or sell listed stocks and bonds there.

To access these markets, and invest your money in them, you can have access to intermediaries that you all already know and who are:

  • Management companies,
  • Financial advisers,
  • Traditional banks,
  • Or online banks.

Any purchase or sale of stocks or bonds on the stock market requires the seller and the investor to give what is called a “stock market order”. All the important information about this action is contained in this stock market order (date and time of the placing of the order, volume of shares or bonds bought or sold, money invested).

Nothing is free in the financial markets

We spoke to you previously about intermediaries allowing you to act on the financial markets. Be aware that these intermediaries will generally present you with costs. Nothing is free in the markets.

These costs may vary from one intermediary to another and you will find either a 100% free platform charging you fees for each order, or a paid platform (monthly subscription for example) not charging you. fees when you buy / sell stocks and bonds (or with very low fees).

In addition, you should know that not all funds available on the stock markets are free. You may have to pay fees to invest in certain funds: these are of course additional fees that will be added to those charged by intermediaries.

But don’t worry, the costs of stocks made in the stock markets are usually ridiculous for the money you invest. For example, at Boursorama bank , when you have a securities account or a PEA, and you are with a beginner profile, you will only pay 1.99 euros per purchase / or sale of shares or bonds (excluding fees special funds).

If you invest well, you will get profitable very quickly it is 1.99 euros spent.

The beginner in the stock market – what profile?

The beginner’s rule

Now that you know the main pricing information, it is important that you know yourself. No, this is not a language error, it is a basic rule that remains essential.

A new or experienced investor who does not know himself risks taking actions that go against the logic of the stock market. These actions can, most of the time, cost you a lot of money.

The first things to know when you start on the stock market

Whether you are new to the stock market or a confirmed investor, take the time to read the checklist below and remember that each step is crucial to help you move forward as best as possible towards your goal as a stock market investor.

  1. Determine your profile as a beginner investor in the stock market,
  2. Get trained (books, Puteaux, video, blog, etc.),
  3. Train yourself even more! We can never tell you enough.
  4. Compare trading platforms ,
  5. Opt for a financial advisor or life insurance if you don’t feel like you’re going into the stock market on your own ,
  6. Choose a platform, preferably free, offering you reduced prices during the phases of purchase and resale of shares or bonds,
  7. Only bet the money you can lose (because you can lose everything),
  8. Don’t be baited by a win (past performance is never a guide to future performance! Stock markets can fluctuate, up or down, extremely fast),
  9. Start by investing small amounts, and once your initial bets have been collected, start increasing your investments,
  10. Know how to be a good loser newbie to the stock market (if this happens to you) – think about the actions that led to your failure,
  11. Only invest in stocks that you feel and that speak to you (that you know and like)
  12. And above all, and above all, be patient and never put affection on your investments!

Conclusion : Investing in the stock market is not to be taken lightly; especially when you are a beginner. Even the most established among us have realized huge losses in specific investments.